Hartzell Veneer Products LLC’s decision to move its business to Hillsdale is viewed by many as a boost for the city’s economic growth.
Hartzell decided to move its production from Benton, Ark., to Hillsdale, Mich., to be closer to suppliers and customers. After choosing to open its plant in an existing building at 282 Industrial Drive, Hartzell began business in June with limited production and moved to full production in September.
Ward Harris, Hartzell Veneer Products general manager, said that the company decided to move its production north since that is where most of the company’s customers are located.
“Back in the day, we had customers all over the country,” Harris said. “Slowly, a lot of the customers in the South went out of business or overseas to Asia, and eventually, we ended up in Arkansas losing business.”
By moving its production ramp to Hillsdale, Hartzell has improved its average delivery time by 50 percent.
“Our products and prices were good, but we decided to move so we would stop losing business,” Harris said. “In Hillsdale, we can have a product to a customer in a day, often cutting lead time from two weeks to four days,” Harris said.
Hartzell Veneer’s primary business includes producing pieces like faces, skins, and edge banding for commercial and residential doors. It also sells components for doors and architectural plywood.
Hillsdale’s leadership is excited about what Hartzell’s move means for improving the city’s economy. In addition to relocating employees from Arkansas to Hillsdale, who are buying, leasing, or renting property, Hartzell has added 30 hourly and salaried jobs for which it’s interviewing many Hillsdale residents.
“It’s a morale booster for us to be able to say that a company came all the way from Arkansas to establish and expand operations here,” said Brian Watkins, Hillsdale city council member.
Mary Wolfram, Hillsdale economic development director, said Hartzell is unique because it made the first move in contacting the city regarding its interest in moving here. Afterward, she and City Manager Linda Brown organized information to send to the company about the town and potential tax abatements and eventually showed the employees around town.
“We wanted them to be attracted to the city,” Wolfram said. “So we went out to eat and showed them houses as well as schools in the area.”
Eight Hartzell employees ultimately decided to relocate with the company.
“I brought them up on two separate trips, and Mary was right there the whole time,” Harris said. “I could tell them a lot about the business, but Mary sold them on the city. “
Most of the families were anxious about moving to the colder climate.
“I tried to prepare them as much as I can for the winter,” Harris said. “These people have never had to own a coat or a pair of boats, so I offered to talk to their families and a lot of them embraced it.”
Although the move has involved a lot of changes for the employees and their families, Harris says they are happy to be here.
“We’ve had huge support from the city,” Harris said. “It’s been a big adjustment, but it’s been great.”
Wolfram hopes that Hartzell’s positive experience with the city will encourage more businesses to move here.
“It would be very odd for a company to randomly decide to locate its business in a small town in the midwest,” Wolfram said. “Our best economic development tool is word of mouth by businesses who are happy here and recommend Hillsdale to their associates.”
